Micro-blogging site Twitter Inc. plans to discontinue engineering work at its development centre in Bengaluru, a move that will result in some staff cuts, according to media reports.
Twitter has said India remains a key strategic market and it will continue to have a presence in Bengaluru. "We thank the impacted individuals for their valuable contributions and are doing as much as we can to provide them a respectful exit from our company", Twitter India said in a statement.
According to a source familiar to the matter, the layoffs will impact less than 20 employees at the development center.
She also said that this is not part of a bigger downsizing move affecting other worldwide operations.
The move comes after Twitter missed revenue estimates for the quarter ended June because of less than expected advertiser demand, while revenue growth fell for the eighth straight quarter. India, which laid off about 600 employees from its research and development centre in Bengaluru, the second largest outside the USA, in 2014.
We have offices in three locations in India: Delhi, Mumbai and Bangalore.
"Over the past 18 months, we have incorporated the technology and talent of our ZipDial acquisition across our company", said Twitter spokesperson.
It was also stated that the company is hiring for other positions in their offices across India and around the world. However, other operations will continue to function in the Bangalore office. No, only the global engineering workforce in Bangalore is affected.
Bengaluru-based mobile marketing and analytics company ZipDial Mobile Solutions was brought past year by Twitter, which paved the way for the American firm to set up an engineering centre in the IT hub of India.
Twitter has not had a good year. Twitter had acquired the Indian company for an amount of somewhere between $30 to $40 million a year ago.
Twitter has continuously struggled to raise its market participation. This particular decision in the country is unlikely to dispel, and quite likely to exacerbate, the doom and gloom surrounding the firm.